CSM Technologies IPO Day 2: GMP Hits 4%—Is it Time to Subscribe?
The initial public offering (IPO) of CSM Technologies has commenced its second day of bidding, with the grey market showing modest gains and maintaining a grey market premium (GMP) of approximately 4%. The IPO has garnered a subscription rate of 26% overall on its first day, with noteworthy engagement from retail investors, who subscribed to 40% of the available shares in their segment. The company aims to raise Rs 145.78 crore through a fresh issue of 1.29 crore equity shares, with a fixed price band of Rs 107 to Rs 113 per share. The offering remains open for subscription until June 29, and shares are anticipated to be listed on the NSE and BSE by July 2, 2026.
Market observers note that based on the current GMP, the estimated listing price is projected to be around Rs 117 per share, suggesting a potential gain of 3.54%. Despite a robust interest from retail investors, non-institutional bidders exhibited a 53% subscription rate, while qualified institutional buyers refrained from participating on the first day, resulting in no bids against the 46.15 lakh shares allocated to their category. This uneven demand among investor segments may indicate a cautious outlook, particularly among institutional investors, raising questions about the overall appetite for the offering.
CSM Technologies, established in 1998, specializes in digital transformation and GovTech solutions, serving a diverse clientele, including government bodies and private enterprises across various sectors such as mining, agriculture, and healthcare. The company reported steady financial growth, with revenues reaching Rs 180.67 crore in FY25, representing an increase from Rs 167.71 crore the previous year. With a P/E multiple of approximately 42.6x based on FY25 earnings, the valuation appears to be on the higher side compared to listed peers in the market.
Brokerage Swastika Investmart has maintained a “Neutral” stance on this IPO, acknowledging the company’s strategic positioning in the growing GovTech sector while also highlighting concerns such as over-reliance on government contracts, lengthy receivable cycles, and heightened competition within the IT services landscape. Given the moderate listing expectations reflected in the grey market, investors are encouraged to assess long-term opportunities associated with digital public infrastructure and enterprise technologies rather than relying solely on short-term market movements or potential listing gains.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)